5 Tax Tips for Your Small Business

No one likes paying taxes because it can take a lot of time and be a hassle.

There’s the worry that you’re overlooking something, have not filled in something correctly, or could be paying more than necessary.

Here are 5 tax tips for your small business.

Salary Sacrifice

A salary sacrifice might be an option if you employ people at your business. For example, employees agree to a lower salary in return for you providing them with childcare vouchers. This is beneficial because you won’t have to pay the insurance of the employer, and the childcare vouchers themselves are tax-free. There are some restrictions, so do further research.

Contribute to a Pension

Another way to reduce the amount of money you pay in taxes is to make contributions to a pension. This is beneficial because such contributions are a deductible expense for a business, and employees don’t need to pay any tax on having the benefit of their firm pay for them. 

Personal Allowance

People who are married or in a civil partnership can make the most of the basic rate tax bands and personal allowance. In many cases, it’s beneficial to transfer some of your assets that produce income, for example, rental income, to your partner. You can take advantage of their lower taxable income.

Pay Yourself Efficiently

The amount of taxes you pay is influenced by the amount you pay yourself from the business. However, the way in which you pay yourself also needs to be considered, and experts like OnPay Solutions can assist with this.

Stay Organized

One of the most frustrating reasons for businesses paying more on their taxes is because they’re not organized. Keep copies of everything for your business, stay on top of paperwork, and you won’t experience any challenges when you file your taxes..